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Item B Final 2-21-03 INTERLOCAL AGREEMENT RELATING TO THE TRANSITION OF W ASTEW ATER JURISDICTION AND SERVICES FROM THE FLORIDA KEYS AQUEDUCT AUTHORITY TO THE KEY LARGO WASTEWATER TREATMENT DISTRICT BY AND BETWEEN MONROE COUNTY, THE FLORIDA KEYS AQUEDUCT AUTHORITY AND THE KEY LARGO W ASTEW A TER TREATMENT DISTRICT ADOPTED _,2003 TABLE OF CONTENTS PAGE ARTICLE I 2 SOURCES OF FUNDING 2 SECTION 1.01. GRANTS. 2 SECTION 1.02. COUNTY FUNDING. 4 ARTICLE II 4 INTERLOCAL AGREEMENT 4 SECTION 2.01. PURPOSE OF INTERLOCAL AGREEMENT. 4 SECTION 2.02. DUTIES AND RESPONSIBILITIES OF THE AUTHORITY. 4 SECTION 2.03. DUTIES AND RESPONSIBILITIES OF THE COUNTY. 5 SECTION 2.04. DUTIES AND RESPONSIBILITIES OF THE DISTRICT. 8 ARTICLE III 9 GENERAL PROVISIONS 9 SECTION 3.01. RECORDING EFFECTIVE DATE. 9 SECTION 3.02. AMENDMENT. 10 1 INTERLOCAL AGREEMENT THIS INTERLOCAL AGREEMENT is made and entered into as of this _day of 2003, by and between Monroe County, Florida (the "County"), the Florida Keys Aqueduct Authority (the "Authority") and the Key Largo Wastewater Treatment District ("the District"). WIT N E SSE T H: WHEREAS, pursuant to Chapter 76-441, Laws of Florida, as amended, and certain agreements executed between the County and the Authority, the Authority had exclusive wastewater jurisdiction in the District wastewater district; and, WHEREAS, the District was formed in 2002 by the Legislature of the State of Florida pursuant to House Bill 471, Chapter 2002-37, Laws of Florida, for the purpose of performing such acts as shall be necessary for the sound planning, acquisition, development, operation and maintenance of a wastewater management system within the district, including all business facilities necessary and incidental thereto; and, WHEREAS, Chapter 2002-37, Laws of Florida, provides the District with exclusive jurisdiction over the acquisition, development, operation and management of a wastewater management system in and for the District boundaries; and, WHEREAS, the County is a political subdivision of the State of Florida with home rule authority to provide waste treatment and disposal services throughout Monroe County and may enter into agreements with the Authority and the District relative to such activities; and WHEREAS, the County has entered into agreements with the Authority as its agent and the District in order to assist the District with the establishment and operation of a wastewater management system within its jurisdiction; and WHEREAS, the County and the Authority have worked to identify funding sources and grants from local, state and federal sources to advance the provision of central wastewater and wastewater services and programs within the District; and WHEREAS, it was imperative to the health, safety and welfare of the citizens of the District that the delivery of such wastewater facilities and programs be expeditiously advanced, and therefore, the County and the Authority entered into certain joint resolutions and interlocal agreements to utilize the resources of two grants and County Capital Infrastructure Funds for the benefit of the District; and WHEREAS, the District is not expected to have a revenue stream for approximately 30 months from the date of this Agreement, unless the County creates a Municipal Services Taxing Unit ("MSTU") to assist the District; and WHEREAS, the County has the legal authority to provide funding to the District as provided herein to accomplish its purposes until the District has an established stream of revenue. NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration each to the other, receipt of which is hereby acknowledged by each party, the County, the Authority and the District hereby agree, stipulate and covenant as follows: ARTICLE I SOURCES OF FUNDING SECTION 1.01. GRANTS. It is hereby ascertained, determined and declared that: A. Federal Grant. Under Public Law 106-31, the Emergency Supplemental Appropriations Act for Fiscal Year 1999 (1249 and 1259 Unmet Needs Program), a supplemental appropriation by the United States Congress was made available to Monroe County for wastewater projects in the District area. 1. The Authority has been designated as recipient/sub-grantee under the Unmet Needs Program to receive and expend grant funds for wastewater project(s) in the District area. The Federal Emergency Management Agency ("FEMA") and the State of Florida Department of Community Affairs ("DCA") are charged with administering grants under the Unmet Needs Program. 2. A Joint Resolution between the County and the Authority was entered into under County Resolution 093-2002 and Authority Resolution 02-08 (a copy of which is attached hereto and marked as Exhibit A) to secure this grant and to name the Authority as the wastewater authority to accept this grant. The payment by the County of $182,857.00 (20% of the County's committed amount of $914,285) has been made to the Authority pursuant to this commitment. This Resolution also established that the site at Mile Marker 100.5 would serve the system funded by this grant. 3. The total grant includes project funding as follows: Federal Share $5,485,714.00 State Share $ 914,286.00 Local Share $ 914,285.00 Total $7,314,285.00 4. DCA (the grantee of this federal grant) and the Authority entered into a Disaster Relief Funding Agreement to fund implementation of the Key Largo Trailer Village wastewater treatment project on the 30th day of August, 2002 (a copy of which is attached hereto and marked as Exhibit B), pursuant to DCA's authority to administer federal financial assistance from FEMA, and to disburse the grant funds to the Authority, as further described in the Disaster Relief Funding Agreement ($914,286). B. Transition of Key Largo Trailer Village to the District. Pursuant to FEMA's guidelines under this grant, as set forth in a letter dated September 18, 2002 from FEMA to the 2 Florida Division of Emergency Management, (attached hereto and marked as Exhibit C), the Key Largo Trailer Village Project will be fully transferred to the District and the District will become the recipient/sub-grantee for the project when the following conditions have been met: (1) Completion of the entire environmental assessment process per the National Environmental Policy Act (NEP A) and related statutes (including completion of a site specific environmental review document and associated public meeting); (2) the funds have been obligated in an approval letter from FEMA to the State of Florida; (3) the State of Florida has developed a contract with the Authority (agreement for Phase I funding for planning and engineering is complete); and (4) a transition plan between the Authority and the District has been executed with assurances that the original scope of work and its associated site development requirements will be implemented (this Transition Interlocal Agreement). 1. Responsibility for the Key Largo Trailer Village Project will be transferred to the District following receipt by the Authority of proposals for designlbuild services for the project. Before March 1, 2003, the Authority will provide the District with the design/build proposals for Key Largo Trailer Village. The Authority's continued involvement in the project will be exclusively limited to meetings and responsibilities directly related to the FEMA site-specific environmental assessment (EA) process. 2. The Authority is using the collective FEMA grant funds for the planning and preliminary design and engineering of the Key Largo Trailer Village and all monies not utilized at the transition stated heretofore shall be either returned to FEMA or assigned to the District as per the direction of FEMA. C. State Grant. Under State of Florida 2002-03 General Appropriations Act, Line Item 1765-A, Fixed Capital Outlay, Keys Wastewater Management Plan Implementation from Land Acquisition Trust Fund, a specific appropriation by the State of Florida was made available to Monroe County for the District in the amount of $1 ,660,000. 1. Pursuant to the requirements of this grant, the Authority on behalf of the County initiated a proposed project in the District on or before August 19,2002. 2. The grant established that the sites necessary to project viability must be acquired; construction bids or designlbuild proposals must be received; and a system of user charges, fees, or assessments must be established no later than March 1,2003. 3. The County has selected the community known as Key Largo Park as the designated project area. A copy of Joint Resolution confirming selection (County Resolution 349-2002 and Authority Resolution 02-25), is attached hereto and marked as Exhibit D. 4. The grant is only for capital improvements, not including engineering and planning. Therefore, the County has agreed to pay up to $356,000.00 for project engineering, design, bidding services, and planning as reflected by County Resolution 349-2002 and Authority Resolution 02-25 as amended, attached hereto and marked as Exhibit D. 5. The State of Florida Department of Environmental Protection ("DEP") has prepared a State Financial Assistance Agreement, DEP Agreement No. LP0338, between DEP 3 and the District, for the purposes of facilitating the $1,660,000 state grant, a copy of which is attached hereto and marked as Exhibit E. SECTION 1.02. COUNTY FUNDING. See Section 2.03 of this Agreement. ARTICLE II INTERLOCAL AGREEMENT SECTION 2.01. PURPOSE OF INTERLOCAL AGREEMENT. The purpose of this Agreement is to cause a smooth transition of both projects, grants, engineering and all related administrative activities from the Authority to the District so that the intent of the District Legislation may be implemented and both grants mentioned heretofore may be preserved, utilized and result in projects as anticipated by them. Therefore, the parties agree that each entity will have the following duties and responsibilities. SECTION 2.02. DUTIES AND RESPONSIBILITIES OF THE AUTHORITY. A. Key Largo Trailer Village. The Authority agrees to complete the following duties and responsibilities with regard to the Key Largo Trailer Village project. 1. Complete a designlbuild request for proposals ("RFP"). 2. Solicit and receive designlbuild technical proposals and cost proposals. 3. Deliver the designlbuild technical proposals and cost proposals received to the District for evaluation and selection. 4. Provide information and assistance to FEMA as necessary to complete the site-specific environmental assessment of the projects as required under the National Environmental Policy Act (NEPA). 5. The Authority agrees that its contractual design professional may be utilized by the District at the discretion of the District, and subject to the design professional's consent, to assist the District with the designlbuild proposal evaluation process, subject to the availability of sufficient grant funding or other sources of funding to reimburse the contractual design professional for their continuing services. B. Key Largo Park. The Authority agrees to complete the following duties and responsibilities with regard to the Key Largo Park project. 1. Complete design drawings, technical specifications and bid documents. 2. Solicit and receive construction bids. 4 3. Deliver the construction bids received to the District for evaluation and selection. 4. The Authority agrees that its contractual design professional may be utilized by the District, at the District's election and expense, to assist the District in evaluating RFP responses. C. Transition. The Authority agrees to assist the District with the transition of projects and to effect an orderly transition in the governance, operation and maintenance of wastewater services in the district boundaries, and specifically to assist the District in meeting the March 1, 2003 deadlines imposed by the State. D. Transfer of Funds. The Authority agrees to transfer any remaining funds it received from the County for the projects to the extent such funds remain upon project transfer. This includes, but is not limited to, the $182,857 transferred to the Authority from the County for the Key Largo Trailer Village project, described below, less the sum of $8,900 to reimburse the Authority for administrative expenses incurred in association with management and coordination of the Key Largo Park project. SECTION 2.03. DUTIES AND RESPONSIBILITIES OF THE COUNTY. A. Financial Commitments. The County agrees to provide certain funds it has available to support the development of the Key Largo Trailer Village and Key Largo Park projects. These commitments are outlined in Exhibits A and D and are provided specifically in Exhibit F. Exhibit F outlines all financial commitments to date, including state and federal funds commitments. The County will provide funds through several different committed funding sources with conditions for the use of these funds, as outlined below. 1. Administrative Loan. Pursuant to an Interlocal Agreement entered into on December 18, 2002 between the County and the District, attached hereto and marked as Exhibit G, the County loaned the District $100,000. Unless otherwise agreed between the County and the District, this $100,000 is to be reimbursed to the County, the terms of which are outlined in the referenced Interlocal Agreement. 2. Capital Funds for Key Largo Trailer Village. I County Pursuant to Resolution 093-2002, attached hereto and marked as Exhibit A, the County will provide capital funds to the District in order to secure a commitment to the Key Largo Trailer Village project up to $914,285, as needed, to complete the project.'2-As costs are inCWTed by the District, and upon a request for payment of !!fes, the County will trlulsfer necessary funds to the District for payment of such expens Kese funds will be provided to the District as a gran and are not required to be paid back to t e coun~o date, 20% of the $914,285 has been tran~tted to the Authority ($182,857). The County ill direct that the Authority transfer these funds to the District to the extent that such funds remain after project development to date. 3. Cesspit Grant Funds. Pursuant to DCA Contracts, a total of $1,225,600 will be provided to the District for Key Largo Trailer Village and Key Largo Park. s a. DCA Contract 00-DR-IW-Il-54-01-002, and DCA Contract 01- DR-16-11-54-001 are attached hereto and marked as Exhibit H. b. The County will administer the grant funds, and will disburse only if the District provides an audit trail identifying that funds will be used to replace cesspits equivalent to approximately $10,100 per cesspit replaced. c. The County will continue to administer these funds and as costs are incurred by the District, upon a request for payment of expenses, the County will transfer funds to the District out of these grant funds. The County agrees that these funds can be utilized for construction as a part of Key Largo Trailer Village or Key Largo Park. 4. County Match to Cesspit Grant. The County agrees to match the DCA Cesspit Grant in the amount of approximately $929,527 for Key Largo Park or Key Largo Trailer Village. a. This amount ($929,527) is dependent on remaining dollars from the Cesspit Identification and Elimination Grant Program, currently administered by the Florida Department of Health for the County. As of the date of execution of this Agreement, a minimum of $790,000 remains in this Program. b. These funds were originally used as a match to State Cesspit replacement dollars, but they do not have to be utilized for replacement. 5. County Capital Infrastructure Funds. Pursuant to County Resolution 349-2002, attached hereto and marked as Exhibit D, the County agrees to fund the District in the amount of $356,000 for engineering, planning, legal and administrative expenses during fiscal year 2003/2004 for Key Largo Park. Any and all funds remaining out of the County Capital Infrastructure Funds provided for this purpose are to be transferred to the District within 60 days of completion of tasks 1,2,3 and 4 provided in Section 2.02B of this Agreement. a. A portion of these funds are currently being utilized to pay Boyle Engineering for engineering design on the collection system for the entire Key Largo Park area. b. The County, with the District's concurrence, will continue to provide these funds directly to Boyle (not to exceed $356,000) until design work and other obligations are completed. 6. County Infrastructure Tax Funds. These funds ($826,234.31 ) have been expended and the land will be transferred to the District within 90 days of the date of execution of this Agreement. The County and the District agree that after the County transfers 6 the land to the District, the County may utilize that portion of the land which is not being utilized by the District, if necessary, for non-structural purposes. 7. $250,425 Commitment for Operational Expenses. The County agrees to provide $250,425 as a grant, in addition to the $100,000 loan already provided to the District, as set forth in the Interlocal Agreement attached hereto and marked as Exhibit G and described above. Specifically, the grant shall be utilized for design, engineering, legal and all related administrative tasks required for implementation of the Key Largo Trailer Village and Key Largo Park projects. The County will forward to the District twenty percent (20%) of the $250,425, which is the amount of $50,085, upon execution of this Agreement. Upon District submission to County of written request for additional sums from this $250,425 commitment, based upon previous expenditure documentation submitted to the County, the County shall disburse additional reimbursements not to exceed the stated 20% ($50,085). 8. The County agrees to consider adopting a Municipal Services Taxing Unit ("MSTU") for the District, pursuant to the District's Amended Resolution 2003-4, attached hereto and marked as composite Exhibit I. Pursuant to this Resolution, the District requested that the County establish an MSTU for the District, pursuant to section 125.01(1)(q), Florida Statutes, and requested a millage rate not-to-exceed .35. This item will be placed on the County Commission meeting agenda as a request for advertisement on February 19, 2003, and will be considered for adoption at the May 21, 2003 County Commission meeting, pursuant to the attached draft County Ordinance (attached hereto as composite Exhibit I). B. The District is required to, and has in fact established a federally-insured account for the funds at a financial institution authorized by State law to receive deposits of public funds. The District must deposit the funds in said account, and account for all expenditures as required by Florida law and accepted government accounting standards. C. Transfer of Real Property. 1. The County agrees to transfer the land known as the "Mile Marker 100.5" Parcel to the District within 90 days of execution of this Agreement for purposes of establishing a wastewater treatment plant. The parties agree that the District is obligated to meet all of the conditions contained within the U.S. Fish & Wildlife Service ("FWS") and FEMA documents, attached hereto and marked as Exhibits J and K, respectively. 2. The County will retain a conservation easement in accordance with Monroe County regulations on the portion of the property not intended for development. D. Affordability and Financing Obligations. 1. FEMA requires that the County meet Environmental Justice standards relating to project affordability in order to receive FEMA funds for Key Largo Trailer Village. 2. The County believes that the Environmental Justice criteria will be necessary at a minimum throughout the County to provide grant funds to Low and Very Low Income homesteaded property owners and has adopted a policy in this regard, pursuant to 7 Resolution 306-2002, attached hereto and marked as Exhibit L. The County has defined Low and Very Low Income levels in accordance with the HUD definition of 80% and 50%, respectively, of the median household income for the County. The Commission adopted this standard based on staff recommendations, attached hereto and marked as Exhibit M. 3. The County and the District have adopted a guideline for wastewater system hook-up fees of $2,700 and monthly Operation and Maintenance Fees of $35. These figures do not include the on-site decommissioning of existing wastewater systems or of the amortization into montWy fees of any capital costs (lateral hook-up fees). 4. The County will consider adoption of an Ordinance establishing a revolving loan fund and low and very low income grant programs by June 2003 and will work with the District and the Authority to ensure that the programs adopted and implemented are fair and equitable across wastewater jurisdictions. E. Assistance during transition. The County agrees to continue working with the District, as is reasonable, to effect an orderly transition in the governance of the District wastewater services. SECTION 2.04. DUTIES AND RESPONSIBILITIES OF THE DISTRICT. A. Financial Commitment. The District must establish, and has established, a federally-insured account for the funds received by the County at a financial institution authorized by State law to receive deposits of public funds. The District must deposit the County loan funds or other funds provided directly to the District in said account. B. Affordability and Financing Obligations. The District agrees to adopt similar affordability and user financing standards as provided in Exhibit L attached hereto and contemplated in the near future by the County, including the establishment of low interest revolving loan fund programs or grant programs for low and very low income homesteaded households. C. Records. 1. F or all funds forwarded or transferred to the District under this Agreement, the District must establish fiscal control and fund accounting procedures that comply with generally accepted government accounting principles, satisfactory to the County's Clerk, in order to assure that the County funds forwarded or transferred to the District are spent for the purposes set forth in this Agreement. All District financial records pertaining to this Agreement must be made available, upon request, to the County Clerk, an auditor employed by the County or State of Florida. Any funds forwarded or transferred by the County to the District under this Agreement that are determined by the Clerk, an auditor employed by the County or the State to have been spent on a purpose not contemplated by this agreement must be paid back to the County with interest calculated pursuant to Section 55.03(1), Florida Statutes, from the date the auditor determines the funds were expended for a purpose not authorized by this Agreement. The District agrees to provide the County Clerk and Administrator with quarterly status reports 8 concerning the expenditure of County funds in sufficient detail to demonstrate compliance with the provisions of this Agreement. 2. Said records must be available for public scrutiny during regular hours of operation and must be available within a reasonable time to auditors employed by the County or the Clerk of the Circuit Court upon request. D. Projected Commitment. The District acknowledges the time and financial commitment put into completing the Key Largo Trailer Village and the Key Largo Park projects to date by the County and the Authority. 1. To the best of its ability, the District commits to completing the Key Largo Trailer Village and Key Largo Park projects within the constraints of the funds appropriated to date. 2. The District agrees to pursue agreements through FEMA and DCA to have committed Phase II funds for initiating and completing final design and construction of Key Largo Trailer Village as the Authority completes its commitment for Phase I funds to develop and follow through with preliminary engineering documents and finalization of the site specific environmental assessment process for Key Largo Trailer Village. 3. The District agrees that it will be bound by all substantive terms of any federal, state or local grant which is transferred to it as sub-grantee. E. Cooperation. In the event bids for the Key Largo Trailer Village project and the Key Largo Park project exceed the District's projected budget for the projects, the District, in cooperation with the County, FDEP and FEMA, will evaluate three options: (1) provide a revised scope of work to the bidders; (2) conduct "value engineering"; or (3) re-bid the projects. In addition, the District will use due diligence in locating additional grant sources in order to meet any revenue shortfalls as a result of higher-than-expected bids. ARTICLE III GENERAL PROVISIONS SECTION 3.01. RECORDING; EFFECTIVE DATE. A. This Agreement, and any amendment hereto, shall be filed with the Clerk of the Circuit Court for Monroe County, Florida, as required by Section 163.01(11), Florida Statutes. B. This Agreement shall become effective upon execution hereof by the County, the Authority and the District as provided herein. C. This Agreement must be approved by the Federal Emergency Management Agency, the Florida Department of Community Affairs and the Department of Environmental Protection of the State of Florida. 9 SECTION 3.02. AMENDMENT. This Agreement shall not be modified or altered except by another written agreement executed by the County, the Authority and the District. IN WITNESS WHEREOF, the County, the Authority and the District have caused this Interlocal Agreement to be duly executed and entered into on the date first above written. BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayor/Chairperson Danny L. Kolhage, Clerk By: Deputy Clerk THE FLORIDA KEYS AQUEDUCT AUTHORITY (SEAL) By: Chairman ATTEST: Clerk THE KEY LARGO W ASTEW A TER TREATMENT DISTRICT (SEAL) By: Chairman ATTEST: Clerk 10 . INTERLOCAL AGREEMENT RELATING TO THE TRANSITION OF WASTEWATER JURISDICTION AND SERVICES FROM THE FLORIDA KEYS AQUEDUCT AUTHORITY TO THE KEY LARGO WASTEWATER TREATMENT DISTRICT BY AND BETWEEN MONROE COUNTY, THE FLORIDA KEYS AQUEDUCT AUTHORITY AND THE KEY LARGO W ASTEW A TER TREATMENT DISTRICT ADOPTED _,2003 T ABLE OF CONTENTS PAGE ARTICLE I 2 SOURCES OF FUNDING 2 SECTION 1.01. GRANTS. 2 SECTION 1.02. COUNTY FUNDING. 4 ARTICLE II 4 INTERLOCAL AGREEMENT 4 SECTION 2.01. PURPOSE OF INTERLOCAL AGREEMENT. 4 SECTION 2.02. DUTIES AND RESPONSIBILITIES OF THE AUTHORITY. 4 SECTION 2.03. DUTIES AND RESPONSIBILITIES OF THE COUNTY. 5 SECTION 2.04. DUTIES AND RESPONSIBILITIES OF THE DISTRICT. 8 ARTICLE III 9 GENERAL PROVISIONS 9 SECTION 3.01. RECORDING EFFECTIVE DATE. 9 SECTION 3.02. AMENDMENT. 10 INTERLOCAL AGREEMENT THIS INTERLOCAL AGREEMENT is made and entered into as of this _day of 2003, by and between Monroe County, Florida (the "County"), the Florida Keys Aqueduct Authority (the "Authority") and the Key Largo Wastewater Treatment District ("the District"). WIT N E SSE T H: WHEREAS, pursuant to Chapter 76-441, Laws of Florida, as amended, and certain agreements executed between the County and the Authority, the Authority had exclusive wastewater jurisdiction in the District wastewater district; and, WHEREAS, the District was formed in 2002 by the Legislature of the State of Florida pursuant to House Bill 471, Chapter 2002-37, Laws of Florida, for the purpose of performing such acts as shall be necessary for the sound planning, acquisition, development, operation and maintenance of a wastewater management system within the district, including all business facilities necessary and incidental thereto; and, WHEREAS, Chapter 2002-37, Laws of Florida, provides the District with exclusive jurisdiction over the acquisition, development, operation and management of a wastewater management system in and for the District boundaries; and, WHEREAS, the County is a political subdivision of the State of Florida with home rule authority to provide waste treatment and disposal services throughout Monroe County and may enter into agreements with the Authority and the District relative to such activities; and WHEREAS, the County has entered into agreements with the Authority as its agent and the District in order to assist the District with the establishment and operation of a wastewater management system within its jurisdiction; and WHEREAS, the County and the Authority have worked to identify funding sources and grants from local, state and federal sources to advance the provision of central wastewater and wastewater services and programs within the District; and WHEREAS, it was imperative to the health, safety and welfare of the citizens of the District that the delivery of such wastewater facilities and programs be expeditiously advanced, and therefore, the County and the Authority entered into certain joint resolutions and interlocal agreements to utilize the resources of two grants and County Capital Infrastructure Funds for the benefit of the District; and WHEREAS, the District is not expected to have a revenue stream for approximately 30 months from the date of this Agreement, unless the County creates a Municipal Services Taxing Unit ("MSTU") to assist the District; and WHEREAS, the County has the legal authority to provide funding to the District as provided herein to accomplish its purposes until the District has an established stream of revenue. NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration each to the other, receipt of which is hereby acknowledged by each party, the County, the Authority and the District hereby agree, stipulate and covenant as follows: ARTICLE I SOURCES OF FUNDING SECTION 1.01. GRANTS. It is hereby ascertained, determined and declared that: A. Federal Grant. Under Public Law 106-31, the Emergency Supplemental Appropriations Act for Fiscal Year 1999 (1249 and 1259 Unmet Needs Program), a supplemental appropriation by the United States Congress was made available to Monroe County for wastewater projects in the District area. 1. The Authority has been designated as recipient/sub-grantee under the Unmet Needs Program to receive and expend grant funds for wastewater project(s) in the District area. The Federal Emergency Management Agency ("FEMA") and the State of Florida Department of Community Affairs ("DCA") are charged with administering grants under the Unmet Needs Program. 2. A Joint Resolution between the County and the Authority was entered into under County Resolution 093-2002 and Authority Resolution 02-08 (a copy of which is attached hereto and marked as Exhibit A) to secure this grant and to name the Authority as the wastewater authority to accept this grant. The payment by the County of$182,857.00 (20% of the County's committed amount of$914,285) has been made to the Authority pursuant to this commitment. This Resolution also established that the site at Mile Marker 100.5 would serve the system funded by this grant. 3. The total grant includes project funding as follows: Federal Share $5,485,714.00 State Share $ 914,286.00 Local Share $ 914,285.00 Total $7,314,285.00 4. DCA (the grantee of this federal grant) and the Authority entered into a Disaster Relief Funding Agreement to fund implementation of the Key Largo Trailer Village wastewater treatment project on the 30th day of August, 2002 (a copy of which is attached hereto and marked as Exhibit B), pursuant to DCA's authority to administer federal financial assistance from FEMA, and to disburse the grant funds to the Authority, as further described in the Disaster Relief Funding Agreement ($914,286). B. Transition of Key Largo Trailer Village to the District. Pursuant to FEMA' s guidelines under this grant, as set forth in a letter dated September 18,2002 from FEMA to the Florida Division of Emergency Management, (attached hereto and marked as Exhibit C), the Key Largo Trailer Village Project will be fully transferred to the District and the District will become the recipient/sub-grantee for the project when the following conditions have been met: (1) Completion of the entire environmental assessment process per the National Environmental Policy Act (NEP A) and related statutes (including completion of a site specific environmental review document and associated public meeting); (2) the funds have been obligated in an approval letter from FEMA to the State of Florida; (3) the State of Florida has developed a contract with the Authority (agreement for Phase I funding for planning and engineering is complete); and (4) a transition plan between the Authority and the District has been executed with assurances that the original scope of work and its associated site development requirements will be implemented (this Transition Interlocal Agreement). 1. Responsibility for the Key Largo Trailer Village Project will be transferred to the District following receipt by the Authority of proposals for design/build services for the project. Before March 1,2003, the Authority will provide the District with the design/build proposals for Key Largo Trailer Village. The Authority's continued involvement in the project will be exclusively limited to meetings and responsibilities directly related to the FEMA site-specific environmental assessment (EA) process. 2. The Authority is using the collective FEMA grant funds for the planning and preliminary design and engineering of the Key Largo Trailer Village and all monies not utilized at the transition stated heretofore shall be either returned to FEMA or assigned to the District as per the direction of FEMA. C. State Grant. Under State of Florida 2002-03 General Appropriations Act, Line Item 1765-A, Fixed Capital Outlay, Keys Wastewater Management Plan ImplementatioJ? from Land Acquisition Trust Fund, a specific appropriation by the State of Florida was made available to Monroe County for the District in the amount of $1,660,000. 1. Pursuant to the requirements of this grant, the Authority on behalf of the County initiated a proposed project in the District on or before August 19,2002. 2. The grant established that the sites necessary to project viability must be acquired; construction bids or designlbuild proposals must be received; and a system of user charges, fees, or assessments must be established no later than March 1, 2003. 3. The County has selected the community known as Key Largo Park as the designated project area. A copy of Joint Resolution confirming selection (County Resolution 349-2002 and Authority Resolution 02-25), is attached hereto and marked as Exhibit D. 4. The grant is only for capital improvements, not including engineering and planning. Therefore, the County has agreed to pay up to $356,000.00 for project engineering, design, bidding services, and planning as reflected by County Resolution 349-2002 and Authority Resolution 02-25 as amended, attached hereto and marked as Exhibit D. 5. The State of Florida Department of Environmental Protection ("DEP") has prepared a State Financial Assistance Agreement, DEP Agreement No. LP0338, between DEP and the District, for the purposes of facilitating the $1,660,000 state grant, a copy of which is attached hereto and marked as Exhibit E. SECTION 1.02. COUNTY FUNDING. See Section 2.03 of this Agreement. ARTICLE II INTERLOCAL AGREEMENT SECTION 2.01. PURPOSE OF INTERLOCAL AGREEMENT. The purpose of this Agreement is to cause a smooth transition of both projects, grants, engineering and all related administrative activities from the Authority to the District so that the intent of the District Legislation may be implemented and both grants mentioned heretofore may be preserved, utilized and result in projects as anticipated by them. Therefore, the parties agree that each entity will have the following duties and responsibilities. SECTION 2.02. DUTIES AND RESPONSIBILITIES OF THE AUTHORITY. A. Key Largo Trailer Village. The Authority agrees to complete the following duties and responsibilities with regard to the Key Largo Trailer Village project. 1. Complete a design/build request for proposals ("RFP"). 2. Solicit and receive designlbuild technical proposals and cost proposals. 3. Deliver the design/build technical proposals and cost proposals received to the District for evaluation and selection. 4. Provide information and assistance to FEMA as necessary to complete the site-specific environmental assessment of the projects as required under the National Environmental Policy Act (NEP A). 5. The Authority agrees that its contractual design professional may be utilized by the District at the discretion of the District, and subject to the design professional's consent, to assist the District with the designlbuild proposal evaluation process, subject to the availability of sufficient grant funding or other sources of funding to reimburse the contractual design professional for their continuing services. B. Key Largo Park. The Authority agrees to complete the following duties and responsibilities with regard to the Key Largo Park project. 1. Complete design drawings, technical specifications and bid documents. 2. Solicit and receive construction bids. 3. Deliver the construction bids received to the District for evaluation and selection. 4. The Authority agrees that its contractual design professional may be utilized by the District, at the District's election and expense, to assist the District in evaluating RFP responses. C. Transition. The Authority agrees to assist the District with the transition of projects and to effect an orderly transition in the governance, operation and maintenance of wastewater services in the district boundaries, and specifically to assist the District in meeting the March I, 2003 deadlines imposed by the State. D. Transfer of Funds. The Authority agrees to transfer any remaining funds it received from the County for the projects to the extent such funds remain upon project transfer. This includes, but is not limited to, the $182,857 transferred to the Authority from the County for the Key Largo Trailer Village project, described below, less the sum of $8,900 to reimburse the Authority for administrative expenses incurred in association with management and coordination of the Key Largo Park project. SECTION 2.03. DUTIES AND RESPONSIBILITIES OF THE COUNTY. A. Financial Commitments. The County agrees to provide certain funds it has available to support the development ofthe Key Largo Trailer Village and Key Largo Park projects. These commitments are outlined in Exhibits A and D and are provided specifically in Exhibit F. Exhibit F outlines all financial commitments to date, including state and federal funds commitments. The County will provide funds through several different committed funding sources with conditions for the use of these funds, as outlined below. 1. Administrative Loan. Pursuant to an Interlocal Agreement entered into on December 18, 2002 between the County and the District, attached hereto and marked as Exhibit G, the County loaned the District $100,000. Unless otherwise agreed between the County and the District, this $100,000 is to be reimbursed to the County, the terms of which are outlined in the referenced Interlocal Agreement. 2. Capital Funds for Key Largo Trailer Village. Pursuant to County Resolution 093-2002, attached hereto and marked as Exhibit A, the County will provide capital funds to the District in order to secure a commitment to the Key Largo Trailer Village project up to $914,285, as needed, to complete the project. As costs are incurred by the District, and upon a request for payment of expenses, the County will transfer necessary funds to the District for payment of such expenses. These funds will be provided to the District as a grant and are not required to be paid back to the County. To date, 20% of the $914,285 has been transmitted to the Authority ($182,857). The County will direct that the Authority transfer these funds to the District to the extent that such funds remain after project development to date. 3. Cesspit Grant Funds. Pursuant to DCA Contracts, a total of $1 ,225,600 will be provided to the District for Key Largo Trailer Village and Key Largo Park. a. DCA Contract 00-DR-1 W-11-54-01-002, and DCA Contract 01-DR-16-11-54-001 are attached hereto and marked as Exhibit H. b. The County will administer the grant funds, and will disburse only if the District provides an audit trail identifying that funds will be used to replace cesspits equivalent to approximately $10,100 per cesspit replaced. c. The County will continue to administer these funds and as costs are incurred by the District, upon a request for payment of expenses, the County will transfer funds to the District out of these grant funds. The County agrees that these funds can be utilized for construction as a part of Key Largo Trailer Village or Key Largo Park. 4. County Match to Cesspit Grant. The County agrees to match the DCA Cesspit Grant in the amount of approximately $929,527 for Key Largo Park or Key Largo Trailer Village. a. This amount ($929,527) is dependent on remaining dollars from the Cesspit Identification and Elimination Grant Program, currently administered by the Florida Department of Health for the County. As of the date of execution of this Agreement, a minimum of $790,000 remains in this Program. b. These funds were originally used as a match to State Cesspit replacement dollars, but they do not have to be utilized for replacement. 5. County Capital Infrastructure Funds. Pursuant to County Resolution 349-2002, attached hereto and marked as Exhibit D, the County agrees to fund the District in the amount of $356,000 for engineering, planning, legal and administrative expenses during fiscal year 2003/2004 for Key Largo Park. Any and all funds remaining out of the County Capital Infrastructure Funds provided for this purpose are to be transferred to the District within 60 days of completion of tasks 1,2,3 and 4 provided in Section 2.02B of this Agreement. a. A portion of these funds are currently being utilized to pay Boyle Engineering for engineering design on the collection system for the entire Key Largo Park area. b. The County, with the District's concurrence, will continue to provide these funds directly to Boyle (not to exceed $356,000) until design work and other obligations are completed. 6. County Infrastructure Tax Funds. These funds ($826,234.31) have been expended and the land will be transferred to the District within 90 days of the date of execution of this Agreement. The County and the District agree that after the County transfers the land to the District, the County may utilize that portion of the land which is not being utilized by the District, if necessary, for non-structural purposes. 7. $250,425 Commitment for Operational Expenses. The County agrees to provide $250,425 as a grant, in addition to the $100,000 loan already provided to the District, as set forth in the Interlocal Agreement attached hereto and marked as Exhibit G and described above. Specifically, the grant shall be utilized for design, engineering, legal and all related administrative tasks required for implementation of the Key Largo Trailer Village and Key Largo Park projects. The County will forward to the District twenty percent (20%) of the $250,425, which is the amount of $50,085, upon execution of this Agreement. Upon District submission to County of written request for additional sums from this $250,425 commitment, based upon previous expenditure documentation submitted to the County, the County shall disburse additional reimbursements not to exceed the stated 20% ($50,085). 8. The County agrees to consider adopting a Municipal Services Taxing Unit ("MSTU") for the District, pursuant to the District's Amended Resolution 2003-4, attached hereto and marked as composite Exhibit 1. Pursuant to this Resolution, the District requested that the County establish an MSTU for the District, pursuant to section 125.01(1)(q), Florida Statutes, and requested a millage rate not-to-exceed .35. This item will be placed on the County Commission meeting agenda as a request for advertisement on February 19, 2003, and will be considered for adoption at the May 21,2003 County Commission meeting, pursuant to the attached draft County Ordinance (attached hereto as composite Exhibit I). B. The District is required to, and has in fact established a federally-insured account for the funds at a financial institution authorized by State law to receive deposits of public funds. The District must deposit the funds in said account, and account for all expenditures as required by Florida law and accepted government accounting standards. C. Transfer of Real Property. 1. The County agrees to transfer the land known as the "Mile Marker 100.5" Parcel to the District within 90 days of execution of this Agreement for purposes of establishing a wastewater treatment plant. The parties agree that the District is obligated to meet all of the conditions contained within the U.S. Fish & Wildlife Service ("FWS") and FEMA documents, attached hereto and marked as Exhibits J and K, respectively. 2. The County will retain a conservation easement in accordance with Monroe County regulations on the portion of the property not intended for development. D. Affordability and Financing Obligations. 1. FEMA requires that the County meet Environmental Justice standards relating to project affordability in order to receive FEMA funds for Key Largo Trailer Village. 2. The County believes that the Environmental Justice criteria will be necessary at a minimum throughout the County to provide grant funds to Low and Very Low Income homesteaded property owners and has adopted a policy in this regard, pursuant to Resolution 306-2002, attached hereto and marked as Exhibit L. The County has defined Low and Very Low Income levels in accordance with the HUD definition of 80% and 50%, respectively, of the median household income for the County. The Commission adopted this standard based on staff recommendations, attached hereto and marked as Exhibit M. 3. The County and the District have adopted a guideline for wastewater system hook-up fees of $2,700 and monthly Operation and Maintenance Fees of$35. These figures do not include the on-site decommissioning of existing wastewater systems or of the amortization into monthly fees of any capital costs (lateral hook-up fees). 4. The County will consider adoption of an Ordinance establishing a revolving loan fund and low and very low income grant programs by June 2003 and will work with the District and the Authority to ensure that the programs adopted and implemented are fair and equitable across wastewater jurisdictions. E. Assistance during transition. The County agrees to continue working with the District, as is reasonable, to effect an orderly transition in the governance of the District wastewater services. SECTION 2.04. DUTIES AND RESPONSIBILITIES OF THE DISTRICT. A. Financial Commitment. The District must establish, and has established, a federally-insured account for the funds received by the County at a financial institution authorized by State law to receive deposits of public funds. The District must deposit the County loan funds or other funds provided directly to the District in said account. B. Affordability and Financing Obligations. The District agrees to adopt similar affordability and user financing standards as provided in Exhibit L attached hereto and contemplated in the near future by the County, including the establishment of low interest revolving loan fund programs or grant programs for low and very low income homesteaded households. C. Records. 1. For all funds forwarded or transferred to the District under this Agreement, the District must establish fiscal control and fund accounting procedures that comply with generally accepted government accounting principles, satisfactory to the County's Clerk, in order to assure that the County funds forwarded or transferred to the District are spent for the purposes set forth in this Agreement. All District financial records pertaining to this Agreement must be made available, upon request, to the County Clerk, an auditor employed by the County or State of Florida. Any funds forwarded or transferred by the County to the District under this Agreement that are determined by the Clerk, an auditor employed by the County or the State to have been spent on a purpose not contemplated by this agreement must be paid back to the County with interest calculated pursuant to Section 55.03(1), Florida Statutes, from the date the auditor determines the funds were expended for a purpose not authorized by this Agreement. The District agrees to provide the County Clerk and Administrator with quarterly status reports concerning the expenditure of County funds in sufficient detail to demonstrate compliance with the provisions of this Agreement. 2. Said records must be available for public scrutiny during regular hours of operation and must be available within a reasonable time to auditors employed by the County or the Clerk of the Circuit Court upon request. D. Projected Commitment. The District acknowledges the time and financial commitment put into completing the Key Largo Trailer Village and the Key Largo Park projects to date by the County and the Authority. 1. To the best of its ability, the District commits to completing the Key Largo Trailer Village and Key Largo Park projects within the constraints of the funds appropriated to date. 2. The District agrees to pursue agreements through FEMA and DCA to have committed Phase II funds for initiating and completing final design and construction of Key Largo Trailer Village as the Authority completes its commitment for Phase I funds to develop and follow through with preliminary engineering documents and finalization of the site specific environmental assessment process for Key Largo Trailer Village. 3. The District agrees that it will be bound by all substantive terms of any federal, state or local grant which is transferred to it as sub-grantee. E. Cooperation. In the event bids for the Key Largo Trailer Village project and the Key Largo Park project exceed the District's projected budget for the projects, the District, in cooperation with the County, FDEP and FEMA, will evaluate three options: (1) provide a revised scope of work to the bidders; (2) conduct "value engineering"; or (3) re-bid the projects. In addition, the District will use due diligence in locating additional grant sources in order to meet any revenue shortfalls as a result of higher-than-expected bids. ARTICLE III GENERAL PROVISIONS SECTION 3.01. RECORDING; EFFECTIVE DATE. A. This Agreement, and any amendment hereto, shall be filed with the Clerk of the Circuit Court for Monroe County, Florida, as required by Section 163.01(11), Florida Statutes. B. This Agreement shall become effective upon execution hereof by the County, the Authority and the District as provided herein. C. This Agreement must be approved by the Federal Emergency Management Agency, the Florida Department of Community Affairs and the Department of Environmental Protection of the State of Florida. SECTION 3.02. AMENDMENT. This Agreement shall not be modified or altered except by another written agreement executed by the County, the Authority and the District. IN WITNESS WHEREOF, the County, the Authority and the District have caused this Interlocal Agreement . - to be duly executed and entered into on the date first above written. BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayor/Chairperson Danny L. Kolhage, Clerk By: Deputy Clerk THE FLORIDA KEYS AQUEDUCT AUTHORITY (SEAL) By: Chairman ATTEST: Clerk THE KEY LARGO W ASTEW A TER TREATMENT DISTRICT (SEAL) By: Chairman ATTEST: Clerk REVISIONS TO TRANSITION AGREEMENT The County Clerk has identified 2 areas requiring revisions. One is spelled out below, showing the necessary added language. Also, there is apparently a typo amounting to a $60,000 discrepancy between a figure cited in the transition agreement and the related figure reflected in an exhibit. However, that info was 3d or 4th hand, & we're not sure where it is. If we can fix it now, great. Otherwise, Rob & I are inclined to let it go for now & fix it by amendment later as it should be obvious with all the incorporations of exhibits what the intent is. To page 6 7. $250,425 Commitment for Operational Expenses. The County agrees to provide $250,425 as a grant, in addition to the $100,000 loan already provided to the District, as set forth in the Interlocal Agreement attached hereto and marked as Exhibit G and described above. Specifically, the grant shall be utilized for design, engineering, legal and all related administrative tasks required for implementation of the Key Largo Trailer Village and Key Largo Park projects. The County will forward to District twenty percent (20%) of the $250.425. which is the amount of $50.085. upon execution of this a2reement. Upon District submission to County of written request for additional sums from this $250.425 commitment. based upon previous expenditure documentation submitted to County. County shall disburse additional reimbursements up to the stated 20% ($50.085). And then there are a couple of changes from staff and the Administration: Page 5, Item 6 actually came from County Infrastructure Tax Funds, so the heading needs to be reworded to: County Infrastructure Tax Funds. And on Page 6, Item C I, is a little too broadly worded for comfort. Since there is in that section reference to Exhibits J & K, we would like the first sentence to just read: The County a2rees to transfer the land known as the "Mile Marker 100.5" Parcel to the District for the purposes of establishin2 a wastewater treatment plant within 90 days of execution of this A2reement.